UAE’s chocolate market thrives amid global cocoa price surge

The UAE’s chocolate market, valued at $736 million in 2024, is continuing its upward trajectory despite facing significant headwinds from soaring global cocoa prices, according to a new report by eToro.

From March 2024 to January 2025, cocoa prices surged by 93%, peaking at over $12,500 per metric ton—nearly 200% higher than March 2023 levels. The spike is primarily attributed to poor harvests in West Africa, the world’s leading cocoa-producing region. Josh Gilbert, Market Analyst at eToro, said:

While the UAE chocolate sector continues to thrive, manufacturers are under pressure to adapt their pricing and product strategies to rising input costs and market volatility

Dubai’s signature chocolate gains global attention

Amid this volatility, a homegrown success story has emerged. A locally crafted chocolate bar—filled with pistachio and tahini—dubbed “Dubai chocolate”, went viral on social media in early 2025. The product’s blend of Middle Eastern flavors and premium design has created global buzz, leading to purchase limits in high-end grocery stores abroad and long queues at UAE retailers.

Originally developed by boutique chocolatier FIX, the product quickly transitioned from a niche Dubai offering to an international sensation.

Premiumisation and innovation define market strategy

The chocolate boom aligns with broader consumer trends. Younger buyers are increasingly drawn to premium, unique, and shareable treats, particularly those with local or cultural appeal. UAE chocolate makers have leaned into this shift by introducing high-end, smaller-format products—a strategy known as shrinkflation—to maintain pricing power while controlling costs.

Despite a slight decrease in cocoa prices in early 2025 due to improved forecasts, risks remain. Potential tariffs on African cocoa and new sustainability regulations from major trading partners could impact UAE producers reliant on international supply chains.

Festive demand keeps sector resilient

Seasonal demand during Eid and Diwali continues to bolster domestic chocolate consumption, with manufacturers leaning on flexible sourcing, local flavor integration, and creative branding to stay competitive. "The fusion of tradition and innovation is what sets the UAE chocolate market apart,” Gilbert said.

Companies that adapt quickly to shifting consumer preferences and global supply pressures will be best positioned for long-term success.